My sister in law (born in 60) is about to be widowed. Her Husband (born in 59) is passing from cancer. They have a 22 year old disabled daughter (age 22 been disabled since age 2). The daughter currently received SS benefits for her own disability. Disability paperwork for the husband has been filed but is not yet approved. We understand the husbands disability will be permitted to be passed to his daughter at a 50% level and his widow will be able to collect his death benefit until such time that her own benefit exceeds her husbands. Please confirm this understanding and provide any guidance you feel helpful.
Our sincere appreciation in advance.

Hi,

While the father is living and receiving Social Security disability benefits, his daughter could potentially receive the higher of a) her own benefit rate, or b) up to 50% of her father's disability rate. If the father dies, the daughter could receive the higher of a) her own benefit rate, or b) 75% of the father's primary insurance amount (PIA). The PIA is basically the same as his disability rate.

His widow could receive up to his full PIA if she starts drawing widow's benefits at her full retirement age. Or, she could start reduced widow's benefits at 71.5% of her husband's PIA at age 60. But, if she qualifies as having a child in her care, she could receive up to 75% of her deceased husband's PIA regardless of her age. The child in care rules for a disabled child depend on the type of disability that the child has (https://secure.ssa.gov/apps10/poms.nsf/lnx/0301310035 or https://secure.ssa.gov/apps10/poms.nsf/lnx/0301310040).

If your sister-in-law is widowed and has also worked enough to be eligible for Social Security benefits on her own record, she would have additional filing options. She may want to strongly consider using the maximization software available on this website to determine her best course of action.

Best, Jerry